CG38200 - Changes of residence by trustees: exit charge
TCGA92/S80
TCGA92/S81
TCGA92/S83
The charge
Roll-over
UK Land and property {#}
TCGA92/S80
TCGA92/S80 provides for a deemed disposal and reacquisition at market value when, on or after 19 March 1991, trustees cease to be resident in the United Kingdom. Usually this happens because United Kingdom trustees retire and are replaced by non-residents. HMRC Trusts & Estates deal with any liability under TCGA92/S80. This guidance is given only to help you identify cases to send to them in accordance with CG38400+.
The exit charge wouldn’t apply to assets within the scope of the non-resident capital gains rules, see CG73769 and CG73988.
TCGA92/S81
TCGA92/S81 limits or eliminates the charge where the change in residence results from the death of a trustee and former residence status is resumed within six months.
TCGA92/S83
TCGA92/S83 imposes a similar charge when, on or after 19 March 1991, the trustees remain resident in the United Kingdom but become resident in another country as well (`dual-resident’).
The charge
A charge under Section 80 or Section 83 is deemed to arise immediately prior to the change in the trustees’ residence status.
The gain is computed as if the trustees had disposed of, and immediately reacquired at market value, all the assets which fall out of the United Kingdom tax charge on the change in trustees’ residence status.
Roll-over
TCGA92/S80(6) prevents roll-over relief under TCGA92/S152 from applying so as to avoid the new exit charge where trustees dispose of assets before, then acquire new assets after becoming non-resident where the new assets are outside the United Kingdom tax charge.
TCGA92/S84 denies roll-over relief where new assets are acquired on or after 19 March 1991 by dual-resident trustees, the gains on which are outside the United Kingdom Capital Gains Tax charge by virtue of a Double Taxation agreement.
UK Land and property
Certain assets remain within the scope of charge when a person leaves the UK e.g. an interest in UK residential property. Guidance on the interactions with any exit charge that would arise is at CG73834 and CG73769 where the exit was before 6 April 2019 and at CG73988 where the exit was on 6 April 2019 or later.